Chemical admixtures are a crucial component of cement and other construction-related goods.
These specialised chemicals are frequently used to increase concrete’s strength or manage how quickly it sets up, allowing wet concrete to be moved over greater distances or kept in place for longer.
Chemical admixtures, which have grown in significance as building techniques have advanced, are also crucial in lowering the price and environmental effect of concrete manufacturing.
A worldwide speciality chemical firm with operations in both the automotive and construction industries, Sika AG is situated in Switzerland.
In addition, MBCC is a top provider of products and chemicals for construction worldwide.
In November 2021, Sika declared its ambition to purchase MBCC in a deal estimated to be worth £4.5 billion.
The two biggest suppliers of chemical admixtures in the UK are Sika and MBCC, and they fiercely compete for customers with high volume needs.
Additionally, these two businesses are two of the few rivals that can accommodate client requests for product development and innovation.
The CMA discovered that the merged company would supply more than half of the admixtures in the UK following the merger and would have little competition, which would limit customer options and perhaps result in higher prices and less innovation.
Senior Director of Mergers at the CMA Colin Raftery said:
Chemical admixtures are essential to the UK construction sector since they are utilised in projects ranging from paving streets to building the country’s biggest infrastructure.
This arrangement may reduce competition, which could result in higher costs and lower-quality products for consumers, raising the cost of these initiatives.
Now that the CMA’s concerns have been raised, Sika AG and MBCC Group have five working days to offer solutions.
In the absence of sufficient proposals, the contract will be forwarded to a thorough Phase 2 assessment.